Abstract
The financial health of employees is increasingly becoming important in many organisations. Personal financial wellness not only contributes to the overall well-being of employees but also affects their job productivity. Thus, employers need the necessary knowledge to evaluate and address employees’ personal financial wellness levels effectively. The main objective of this study was to analyse the level of personal financial wellness amongst employees at a South African tertiary institution and gain insight which employers can use in addressing the needs of their staff with regard to personal finances. The study followed a cross-sectional design. Primary data were collected using a self-administered questionnaire from 60 attendees of a personal finance workshop, using the validated Personal Finance Well-being Scale. Practically visible to practically significant correlations were found between the number of years employed, income tax percentage paid on income earned, age, number of years being a homeowner and personal financial well-being, respectively. There were also practically non-significant correlations between general health levels, highest qualification, the number of children living in a household, number of children or other financially responsible adults and personal financial well-being. Employees’ sources of advice also seemed to influence their financial well-being. Respondents indicated that they experienced high financial stress to overwhelming stress and were dissatisfied with their current financial situation. It is also the first study to determine the level of financial wellness amongst a group of employees in the higher education sector using the Personal Finance Well-being Scale and only the third study that was found to use this scale amongst employees. This should enable employers to better support their employees.
Highlights
The financial health of employees is increasingly becoming important in many organisations
32.7% of the respondents experienced high financial stress to overwhelming stress, and 60.4% indicated that they were dissatisfied with their current financial situation
It is the first study to determine the level of financial wellness amongst a group of employees in the higher education sector using the Personal Finance Wellbeing Scale and only the third study that was found to use this scale amongst employees
Summary
The financial health of employees is increasingly becoming important in many organisations. Financial concerns and the manner in which employers deal with these issues have changed over the last two decades (Garman et al 1999). Organisations expected their employees to leave their problems outside the workplace; employers are required to assist their employees with a range of personal finance-related difficulties (Garman et al 2005). Previous studies have established an important relationship between financial education and financial behaviours. Empirical testing of the levels of employees’ personal financial wellness will emphasise the importance of workplace financial education
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